| The goal for many organizations is to gain competitive advantage by reducing cost structures and improving operating efficiencies. Offshore outsourcing is a prevalent strategy used by organizations (Oliveira, Hartung, & Wendling, 2010) to attain competitive advantage through cost savings and efficiencies by moving production and services offshore (Ahlawat & Ahlawat, 2006). An essential aspect of goal attainment is making the correct sourcing decision. Whether onshore or offshore, making an incorrect sourcing decision can reduce an organization's profitability and competitive advantage (Ding, Benyoucef, & Xie, 2005). Grounded in transaction cost and resource-based theory the purpose of this qualitative phenomenological study was to explore study participants' lived experiences of offshore outsourcing. The modified van Kaam method proposed by Moustakas (1994) afforded a basis upon which to collect and analyze the data and gain an understanding of the essence of the participants' experiences. The participants were 13 members of a regional APICS chapter in the Southeastern United States. Results revealed one major theme: the need to develop a global sourcing strategy supported by pre-decision analysis. Two sub-themes of expectations of cost savings and strategy and risk analysis supported the major theme. Whereas the topic of offshore outsourcing has received much attention in the literature, much less has been written about the topic of necessary strategies to support the venture. The research study conclusions supported the need for global strategies including sourcing strategy, risk strategies, and contingency strategies, identified and implemented prior to the beginning of the offshore venture. |
